Press release
Global Data Center Construction Market Outlook 2025-2034: Trends, Innovations, And Future Outlook
Data Center Construction Market Size
What Is the Data Center Construction Market Size and Projected Growth Rate?
The expansion of the data center construction market has been substantial in the past few years, going from a value of $260.49 billion in 2024 to a projected worth of $277.18 billion in 2025. This corresponds to a compound annual growth rate (CAGR) of 6.4%. Factors contributing to this growth during the historical period include an increasing need for data storage and processing, higher investments in digital infrastructure, globalization, and a rising demand for colocation data centers.
There is an anticipated robust expansion in the data center construction market size in the upcoming years. The market is projected to skyrocket to a worth of $360.41 billion in 2029, experiencing a compound annual growth rate (CAGR) of 6.8%. This hike during the forecast period could be ascribed to the flourish of the digital economy, global data center expansion, transition towards cloud computing, increasing demand for edge data centers, and 5g integration. Key ongoing trends during the forecast era involve eco-friendly and sustainable design, modular data centers, focus on security and compliance, and the concept of data center-as-a-service.
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What Are the Major Segments in the Data Center Construction Market?
The data center construction market covered in this report is segmented -
1) By Data Center Type: Small-Scale Data Centers, Medium-Scale Data Centers, Large-Scale Data Centers
2) By Infrastructure: Electrical Infrastructure, Networking Infrastructure, Other Infrastructures
3) By Power Distribution And Cooling Infrastructure: Power Distribution, Cooling
4) By End-Use: Banking, Financial Services and Insurance (BFSI), Energy, Government, Healthcare, Manufacturing, IT And Telecom, Others End-Uses
Subsegments:
1) By Small-Scale Data Centers: Edge Data Centers, Micro Data Centers
2) By Medium-Scale Data Centers: Colocation Data Centers, Hybrid Data Centers
3) By Large-Scale Data Centers: Enterprise Data Centers, Hyperscale Data Centers
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What Are The Driving Data Center Construction Market Evolution?
The data center construction market is anticipated to see significant growth due to the rise in data usage related to cloud computing. When we talk about data usage, we're discussing how much data is being uploaded or downloaded via a device. This, in turn, makes the construction of additional data center spaces an important priority for businesses in the sector. For example, results from a survey carried out by the American Bar Association in November 2022 revealed a substantial increase in overall cloud data usage, growing from 60% in 2021 to 70% in 2022. Notably, solitary cloud users saw an increase from 52% to 84% over the same time period. Therefore, data center construction is benefitting from the current expansion in cloud computing data usage. Data Center Construction Market Driver: The Growing Need for Cloud Services Fuels Data Center Construction Market Expansion
Which Firms Dominate The Data Center Construction Market Segments?
Major companies operating in the data center construction market are Google LLC, Amazon Web Services Inc., Microsoft Azure, The International Business Machines Corporation, Schneider Electric SE, Meta Platforms Inc., NTT Ltd., Turner Construction Co, STO Building Group Inc., Equinix Inc., DPR Construction Inc., Iron Mountain Inc., Digital Realty Trust Inc., Stantec Inc., SAS Institute Inc., Zayo Group Holdings Inc., Gensler, CyrusOne LLC, Hensel Phelps Construction Co., Cyxtera Technologies LLC, Fortis Construction Inc., QTS Realty Trust Inc., HITT Contracting Inc., TierPoint LLC, Sabey Data Center Properties LLC, Flexential Corp., Holder Construction Group LLC, Cologix Inc., Alfa Tech Consulting Engineers Inc., ipSpace.net AG.
What Trends Are Expected to Dominate the Data Center Construction Market in the Next 5 Years?
Key industry participants in the data center construction market are focusing on the enhancement of technology in their products, employing innovative additions like the Universal Data Hall Design (UDHD) to augment their stake in the market. The UDHD is a design tool for data centers that incorporates standard colocation features while stressing on scalability and flexibility. It features a slab floor complete with perimeter cooling, a design that's ideal for significant full-hall high-performance computing (HPC) applications deployments. For instance, DataBank Holdings Ltd., a US-based firm offering information management services, introduced UDHD, an inventive method for constructing high-density data centers that facilitate high-performance computing (HPC), in August 2023. UDHD enables HPC by providing enterprises with the agility to manage any form of deployment their workload requires.
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Which Is The Largest Region In The Data Center Construction Market?
North America was the largest region in the data center construction market in 2024. The regions covered in data center construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Data Center Construction Market?
2. What is the CAGR expected in the Data Center Construction Market?
3. What Are the Key Innovations Transforming the Data Center Construction Industry?
4. Which Region Is Leading the Data Center Construction Market?
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